Topic: Banking; an ethical dilemma?
Module: Introduction to financial services
Introduction
With the massive development of modern society, people’s income statement has become better and better. The bank has played the important role in many different kinds of areas such as loan contracts, interest and reserves as well. Bank has become more and more significant in people’s life and no one can live without it. Due to the significant status the banks have, the question has come out that does any bank have the ethical dilemma and how ethical have recent banking practices been. In this assignment, the main target is to answer the question and making the analysis and discussion in the same time, including the definition of the bank, what kind of role the bank plays in the society, some typical examples, which are deeply associated with the modern society and the discussion of the examples. In the same time, the fractional reserves as well as maturity transformation are analyzed and discussed. Through the discussion of these two parts, the result can be got that banking system is ethical and positive to the modern society.
What is a bank and the role of bank
As is known to us all, the banking system still constitutes the largest part of the financial system in countries and plays the important role in the whole world in the same time, especially in some developing countries or markets such as China. ‘Banks are the major type of deposit-taking institution, they make their living predominantly by taking deposits which represent their liabilities and loaning these funds to borrowers which represent their assets’ (Pilbeam, 1998). The banks loan out the money in a higher interest rate to make the profit and sometimes some kinds of ...
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The abstract idea of money can be expressed in many ways. Perhaps the most straightforward way is through the acquisition of grand possessions. In the first chapter of the novel, Nick, the first-...
The National Association of Social Work's Code of Ethics is not only something that is crucial to someone in the field of Social Work but can also be applied to everyday life. These values in which the Code of Ethics mandates professionals to use are very important in knowing how to help clients in bettering their lives, and in help society as a whole become a better place. Service, social justice, dignity and worth of the person, importance of human relationships, integrity, and competence are all the core values of Ethics and should be learned and practiced by all, not only Social Workers (NASW, 2008).
In addition to the powerful coordination the Bank possessed, it influenced interest rates for loans to the working class and the rate of inflation in the nation. Because of the use of various bank notes, variegating from bank to bank due to the lack of national currency and mixture of specie, people trusted that each bank would be able to “cash in” their bank note for specie. This did not always hold true, but the Second Bank of the United States was the most trusted of the banks to supply specie in exchange for their bank notes. Because of this most people, in order to protect themselves from losing money, would exchange state bank notes for notes issued by the Second Bank. However, this meant that the Second Bank could threaten the state banks by demanding more gold, which might cause for their bankruptcy. As a result, the state banks were pressured into not being able to over issue their bank notes, which inevitably decreased their importance and power in the nation by decreasing the circulation of their bank notes. This was the greatest argument posed by the leaders of the state banks against the Second Bank of the United States (Roughshod 2).
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The social work profession and its Code of Ethics dictate that social workers must act in the best interest of the client, even when those actions challenge the practitioner’s personal, cultural and religious values. In practice; however, ethical decision-making is more complex than in theory. As helping professionals, social workers are constantly faced with ethical decision-making or ethical dilemmas. As noted by Banks (2005), an ethical dilemma occurs “when a worker is faced with a choice between two equally unwelcome alternatives that may involve a conflict of moral principles, and it is not clear what choice will be the right one” (as cited in McAuliffe & Chenoweth, 2008, p. 43). In addition, ethical decision-making is a process that
Reamer, R.G. (2006). Social Work Values and Ethics . 3rd ed. New York: Colombia University
Throughout this course, I have learned essential ways to behave as a social worker. Prior to having this class, I was caught in an ethical dilemma at my former job. Without prior knowledge of ethical decision making models, I was able
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)
A variety of groups are concerned in bank profitability for various reasons. The bank shareholders would want to know if the value of their investments is high or low. The investors also use current and past performance to predict future price of the banks’ shares traded on the stock exchanged. The management of the bank as trustee of the shareholders is evaluated and compensated on the basis of how well their decisions and planning have contributed to growth in assets and profits of their banks. Employees of bank also are concerned with profits, since their salaries and promotions are frequently tied to the profitability performance of their banks. Depositors use bank performance and profitability as indicators of security for their deposits in the banks. Finally, business community and general public are concerned about their banks’ performance to the extent that their economic prosperity is linked to the success or failure of their banks.